Intralot posts 29% EBITDA rise driven by US growth in Q1, but group revenue drops 8%

Greek lottery and gaming supplier Intralot has announced a 29.2% year-on-year rise in EBITDA for the first three months of 2023, amounting to €33.7 million ($36.1 million). Meanwhile, group revenue was down by 8.4% to €89.5 million ($96 million), as the company targets sustainable growth in the US and key markets around the world.

“We are extremely proud of first quarter robust organic EBITDA growth of 29% and a return to Net Earnings, along with healthy cash flows and significant reduction of Group Net Leverage Ratio down to 3.6x, providing additional momentum to Intralot’s successful turnaround story as a result of our consistent efforts in the past few years,” said Chairman & CEO Sokratis P. Kokkalis.

“With healthy financials and new technical capabilities offered through next-generation solutions for Lottery digital transformation, in both the retail and online worlds, we look forward to timely addressing upcoming maturities, further improving our capital structure, and implementing an ambitious plan for strong and sustainable growth in the US and key markets around the world.”

The company credited the jump in quarterly EBITDA to “substantial growth” in its US operations, where revenue and EBITDA jumped 13.1% and 31.6% respectively year-over-year. A boosted performance was also seen in Turkey, further contributing to the overall EBITDA growth.

Chairman & CEO Sokratis P. Kokkalis

Breaking down results by segment shows that revenue from the company’s Lottery operations was the main driver at 60.4% of the total. This vertical further eclipsed the other segments, which include sports betting (17.5%), video lottery terminals (12.5%) and IT products and services (9.5%).

During the quarter, 87.5% of Intralot’s revenue stemmed from supplying businesses and governments with its services. The remaining 12.5% share resulted from the operation of gambling services. After paying tax revenue to the state, the business posted €3.1 million ($3.3 million) in net income.

Looking forward, company officials said they identify "significant opportunities" in the growth of the Lottery and Sports Betting online markets and the expansion of regulated iLottery markets, as well as the recovery from the recent pandemic. It is worth noting Intralot took on significant debt over the course of the Covid-19 crisis.  

"Combined with the evolution of Intralot's new technological solutions for Lottery digital transformation, the company is in a position to capture more technology projects with an increased profit margin compared to previous years," said the firm.

While Intralot noted world economies continue to navigate through macroeconomic uncertainties including high-interest rates, slow growth, and inflation, it also highlighted that the gaming industry "seems to be more resilient than other sectors of the economy," presenting above-average growth in several regions.

Access Intralot's full Q1 2023 report here.